Judging by an academic study and two market research reports on tourism and real estate, Guanacaste is on track to be Costa Rica’s most expensive region to live or visit… Read more » Continue reading →
Judging by an academic study and two market research reports on tourism and real estate, Guanacaste is on track to be Costa Rica’s most expensive region to live or visit for 2014. Although the majority of complaints are coming from foreign visitors and expats, there does not seem to be an exodus. In fact, hospitality and tourism operators as well as real estate agents are expecting that 2014 will be even more prosperous than last year despite the ultra-high cost of living in Guanacaste.
An early 2012 study of the Chorotega Region by the Economic Sciences Institute of the University of Costa Rica offered the following tidbits of information:
- Going from an agricultural economy to tourism and luxury real estate has done nothing to alleviate poverty in the region.
- Poverty levels in the region are about one hundred percent greater than in the Central Valley.
- The average tourist stays one week. A little more than 60 percent are from the United States, and they complain about everything: The airport, the cities, the poor traffic signaling system, the roads, the rental cars (too expensive), the tours (also very expensive).
- The average resident is puzzled as to how there can be so much tourism and luxury real estate development amidst so much poverty.
A February 2013 market research report by the National Chamber of Tourism (Spanish acronym: CANATUR) indicated that local tourists (Ticos) considered their own country to be a very expensive place to visit; yet very few chose to spend their vacations abroad.
During the previous high tourist season, many local families chose to stay at 2-star hotels in Guanacaste and other beach resort areas such as Jaco. This year, however, they prefer all-inclusive luxury hotels even though they still feel that going on vacation is very expensive.
In March 2013, Guanacaste was identified as one of the most expensive regional housing markets by business news weekly El Financiero. Similar markets included Escazu, San Pedro, Curridabat, and Santa Ana -all in the Central Valley, but the speculative intent has always been higher in Guanacaste. Real estate reporter Ana Cristina Camacho Sandoval explained the situation in Guanacaste’s Gold Coast as follows:
Seven years ago, a lot in Playa Tamarindo could be priced at $25 per square meter. A foreign buyer acquires it only to sell it to a friend for $50 per square meter. No more friends will enter the chain after this point; but the foreign sellers will continue to target foreign buyers and boost the selling price.
Another interesting fact offered by El Financiero was that in 2010 there may have been about 400 foreign real estate agents who claimed to have offices in Playa Hermosa. These days, that number is closer to 40.
Real estate observers are not sure whether to label the current frenzy of housing activity a boom or a bubble. But they are certain about one thing, however: The cost of living in Guanacaste is rising along with highly variable real estate pricing.